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hi pls help 5. Swaps Companies A and B have been offered the following rates per annum on a 10 million kr 4-year investment: Company

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hi pls help

5. Swaps Companies A and B have been offered the following rates per annum on a 10 million kr 4-year investment: Company Fixed Rate Floating Rate Company A 6.0% LIBOR Company B 6.6% LIBOR +0.2% (a) Design a swap between company A and company B that is equally attractive to both companies, if company A requires a fixed-rate in- vestment and compally B requires a floating-rate investment? (b) A swap can be viewed as a package of zero coupon bonds and floating rate bonds. Carefully explain this statement. If you need to introduce any notation, you should define it clearly. No calculations are needed

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